Northern Millstone: Anorak Scooped Them All On The Rock
THIS again comes in the category of we told you so, ahead of anyone. Northern Rock. Northern Millstone.
Today’s Mail On Sunday is telling of secret, hush-hush, bonus payments paid to staff and directors of Northern Rock…after the biggest bank crash in UK history. Anorak told you four weeks ago.
The Bank of England is propping up Northern Rock to the tune of around £55bn…forget the BBC figures of £25 to £35bn, it’s nowhere near…We told you so.
If the Chancellor doesn’t act at once everything will be lost and the Bank of England’s multi-billion loan goes out with the bathwater … and guess what? Anorak told you that first too.
Meanwhile the fat cats who did such a totally rubbish job get their bonuses. (As we have already said. We told you…)
Just a thought, will SuperJock Gordio make Hain supremo of the newly Nationalised Northern Millstone. If it wasn’t a distinct possibility, it would be frighteningly laughable.
See: Secret Bonus
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Credit crisis. Banks in trouble. “No probs” says the Government’s money chief Chancellor Alistair Darling. The Bank of England will save the day. Big loan, Big interest re-payment promised, Big profit said to be on way… Big Bank Run.
At the risk of boring you…we told you so several weeks ago and before anyone else. The total UK Government risk here is now over £60bn with prop up loans and promissory notes to investors and other bank lenders.
The whole thing is an utter disaster and the Bank’s (drastically thinned and re-vamped) Board of Directors yesterday failed in it’s bid to keep the lid on their shareholders.
The game is up. The Government will have to act immediately to protect its backside.
Just a small point here. When the Nationalisation goes through, it may be as well to understand that it means every single N. Rock mortgage borrower is going to wake up and find a Government which finds it difficult to cope with the correct way of dealing with political donations is going to have the FIRST CHARGE on the title deeds of hundreds of thousands of private homes and business properties.
Property prices fall as well as rise. Lenders have to tell you that because the Government insists they do. The same warning now has to go to the British public.
It will come as a variation on this but basically it will boil down to:
If the value of property falls, the Northern Millstone Bank’s assets also fall and no other bank will lend it money. So you…the British public have to pay for it.
Most homeowners should understand the full horror of it all and will attempt to re-mortgage their home. This does two things. It will give the hard-pressed Nationalised bank a short-term cash flow AND will strip it of its only assets. It gets even more complex because the re-mortgages will take funds from lenders and give it to the govern….sorry, Northern Grabit Quick Bank… this then means there is no money for others… new borrowers. What happens? House prices are forced down and the Nationalised bank loses more money, sells more mortgages. Get it – AGW
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Posted: 17th, February 2008 | In: Money Comment (1) | TrackBack | Permalink
